Khagaria Superintendent of Police Mithu Prasad said the Maoists had demanded Rs 50,000 from fish traders Sagar Sahni (32) and his uncle Chhathu Sahni (45) and killed them last night as they failed to meet the demand.
The villagers complained that the murders in Bahadurpur Diara locality under Alauli police station were committed at the behest of CPI(Maoist) area commander Lakhan Singh alias Lambu, Prasad said.
Chhathu Sahni's son Ranjit Mukhiya lodged an FIR naming Lambu and five other persons as responsible for the killing of his father and cousin.
Lambu was out on bail in connection with the cases related to Naxal violence, Prasad said.